Inland Marine

Question 1

Five Areas of Inland Marine Coverage

Answer 1

1. Bailee
2. Builder’s Risk
3. Installation
4. Contractor’s Equipment
5. Transportation

Question 2

3 Types of Bailment

Answer 2

1. Gratuitous Bailment for benefit of bailor
2. Gratuitous bailment for benefit of bailee
3. bailment for mutual benefit of bailor/bailee

Question 3

Gratuitous Bailment for Benefit of Bailor

Answer 3

bailee owes bailor low duty of care

ex. coat check

Question 4

Gratuitous Bailment for Benefit of Bailee

Answer 4

bailee owes bailor high duty of care

Question 5

Bailment for Mutual Benefit

Answer 5

An appliance repair shop (the bailee) gets paid, and the owner of the
appliance (the bailor) gets back a working piece of equipment. This arrangement requires that the bailee exercise a reasonable duty of care. The duty of care may also be clarified, expanded, or limited in an oral or written contract.

Question 6

Bailee Coverage Options

Answer 6

1. Legal Liability
2. Direct Damage

Question 7

Legal Liability

Answer 7

coverage applies only if bailee is legally liable for the damage

Question 8

Direct Damage

Answer 8

coverage applies regardless of whether the bailee is legally liable for the loss

Question 9

Bailee Covered Property

Answer 9

direct physical loss caused by a covered peril to property of others
that is in “your” care, custody, and control for processing.

Processing, includes but is not limited to finishing, repairing, restoring, adjusting, or other similar work upon the property

Question 10

Bailee Property Not Covered

Answer 10

1. Aircraft/Watercraft
2. Contraband/Property in course of illegal transportation/trade
3. Furs
4. Jewelry, Precious/Semi-Precious stones/metals
5. Money/Securities
6. Property accepted by a processor without a charge for service
7. Self-propelled vehicles designed for highway use
8. Waterborne property except while in transit in the custody of a carrier for hire

Question 11

Bailee Coverage Extensions

Answer 11

1. Off Site Property
2. Transit

Question 12

Bailee Exclusions

Answer 12

1. Earthquakes/Earth Movement
2. Flood/Surface & Below Surface water/Water Back Up
3. Nuclear/War/Destruction by Civil Authorities
4. Loss of Use/Delay/Market
5. Pollutants (unless certain specified perils are involved)
6. Criminal/Fraudulent/Dishonest/Illegal Acts
7. Mechanical Breakdown/Wear & Tear
8. Processing Work
9. Theft From An Unattended Vehicle
10. Voluntary Parting Exclusion
11. Damage for Resultant Loss